Further Weakening RMB Adding to Turkish Lira’s Problem, warns Garcia-Herrero
Chief Economist for Asia-Pacific at Natixis and Faculty Associate Alicia Garcia-Herrero comments on Turkey’s fallout in 2018. According to Garcia-Herrero, the impact has been much larger than expected as Asian countries that could have been insulated from the event in Turkey were not. Currencies have depreciated quite rapidly and the question is whether it will continue. Garcia-Herrero predicts that currencies will begin to weaken. The renminbi has weakened further, which adds to the problem of the Turkish lira. In addition “we may see some governments hiking rates and some central banks hiking rates”. She also comments that “looking further ahead, we probably have to move away from Turkey to the trade war again so we know there's going to be a mission.” The Vice Minister of Commence just announced that they will be heading to Washington for negotiations. She states that “they're short of time to negotiate because the $200 billion additional import tariffs to be imposed by the US come to floor on the 31st of August, 2018.” Is this negotiation going to help make progress, or will additional methods be implemented by the US? What would be the outcome? questions Garcia.
Watch the entire video published on Forbes.com on 16 August 2018.
